Monday, March 30, 2009

Bernanke claims The Fed is independent

From Bloomberg News' Craig Torres:

At 4:30 p.m. on March 23, on a day dominated by release of the Obama administration’s plan to save the banking system and the fourth-best day in postwar Wall Street history, the U.S. Treasury and Federal Reserve released a one-page joint statement on the division of economic responsibilities between the two agencies.

Amid the flurry of news, the statement passed with little public attention; neither the New York Times nor Wall Street Journal printed articles about it the next day. The release said that while the Fed collaborates with other agencies to preserve financial stability, it alone is in charge of keeping consumer prices stable, its independence “critical.”

I guess I'm not surprised that Ben Bernanke is actually pretending that The Fed is independent. But here's a reality check - Bernanke's term ends in January 2010. And the Fed Chairman is appointed by the POTUS.

Who is gullible enough to believe The Fed is independent? I can't wait to see Bernanke go. I just hope he's not replaced with Larry Summers.

Tim White

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